The seller signs on the assignment section of the car title, which is typically located on the back of the document. This area is specifically designated for transferring ownership from you (the seller) to the new buyer. It's critical to sign exactly as your name appears on the front of the title, often requiring a notarized signature depending on your state's regulations. Failing to sign correctly is a primary reason for title transfer rejections at the DMV.
Before you sign, ensure all details in the assignment section are accurately filled out. This includes the vehicle's sale price, the exact date and time of sale, the odometer reading, and the buyer's full name and address. Any errors or blank fields can invalidate the transfer process.
| Key Data Point | Importance & Consideration |
|---|
| Notarization Required | Over 30 states mandate a notarized signature for a title transfer to be valid. |
| Odometer Disclosure | Federal law requires an accurate odometer reading for vehicles under 16,000 lbs; misrepresentation can lead to significant penalties. |
| Print Name vs. Signature | Most titles have a line for you to print your name clearly and a separate line for your legal signature. Both are often required. |
| Co-owner Signatures | If the title lists two owners with "and," both must sign. If it uses "or," either owner can sign to complete the sale. |
| Lien Release | If a loan was recently paid off, a separate lien release document from the lender may be needed in addition to the signed title. |
| Junk/Salvage Titles | These titles have different, often more restrictive, assignment procedures that must be followed precisely. |
After signing, your responsibility is to provide the signed title to the buyer and, in most states, file a release of liability with your local DMV. This document informs the state that you are no longer the owner, protecting you from future parking tickets or fines associated with the vehicle. Complete the transaction with a thorough bill of sale that both parties keep for their records.
